Top Management Team Human Capital, Enterprise R&D Investment And Organizational Performance

As the most important human resources of the corporations, the corporate executives have aroused much attention from domestic and foreign scholars. Since Hambrick and Mason (1984) put forward the Upper Echelons Theory, a large number of empirical research literature have emerged in Western academia on the relationship between the human capital of executive team and corporate performance. As China is still in the period of economic transition, the corporations are putting more emphasis on the analysis and construction of their management team. In this context, it is of great significance to discover the influence of the management team human capital on corporate performance in the manufacturing. After sorting out and analyzing relevant literature, I find that there are few papers concerning the approaches of the human capital in manufacturing affecting its corporate performance and there may exists black box between the two. Based on the paradigm of "Management team human capital-behaviors-economic consequences" and in the view of corporation choosing R&D strategy, this paper expects to set up a contact between management team human capital and corporate performance.First of all, through quantifying the management team human capital, the effect of variables’different dimensionless is eliminated and the index of the management team human capital is created. Then, after further studying the connections between management team human capital, R&D strategy and corporate performance, we utilize the mediating variables to study that the human capital affects the corporate performance through the choice of R&D strategy and the mediating effect is quantified. We can draw3conclusions from this empirical research. Firstly, the biography and non-biography human capital of management team have obvious impact with different kinds on corporate performance. Secondly, the two human capital mentioned above also have manifest influence on the choice of R&D strategy in distinct ways. Thirdly, the human capital influence the corporate performance only partly through the choice of R&D strategy, which acts as part of the mediating variable and connecting link between corporate governance and performance.